8 Biases That Wreck Trades (Anchoring, Recency, Confirmation)
A field guide to the mental shortcuts that quietly distort your trading — what each one feels like at the screen, and the journal habit that counters it.
The same mental shortcuts that help us survive daily life turn into expensive bugs in the unnatural environment of a market. Behavioral finance has catalogued how investors systematically overreact to some things and underreact to others, and how attention and crowd behavior pull prices around. You can't disable these biases, but you can learn to recognize them mid-trade. Here are eight that do the most damage, and the journal habit that fights each.
Biases that distort what you see
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